Starting a healthcare staffing agency might seem like a smart play in a high-demand industry — and it can be. But too many founders jump in without a clear understanding of what’s ahead. The reality? It’s complex, competitive, and expensive.
If you’re serious about building a sustainable agency, here are the key challenges you need to be ready for — and how to prepare.
1. Regulatory Compliance Isn’t Optional
Healthcare staffing means dealing with federal and state laws, licensure requirements, and patient safety standards. If your team isn’t properly credentialed or if your compliance processes are weak, you won’t just lose contracts — you could face penalties.
You need systems for:
- Verifying licenses and certifications
- Tracking expiration dates
- Documenting training and background checks
Without this, large healthcare clients and MSPs won’t even consider you.
2. Clients Are Harder to Land Than You Think
You’re not the only agency trying to get into that hospital or long-term care group. The competitive landscape is fierce — especially in MSP programs where hundreds of agencies are fighting for a limited number of job orders.
Even when you do get access to jobs, expect:
- A high submission-to-placement ratio (10:1 or worse)
- Zero client feedback
- Positions closing with no notice
- Delays in payment (30–60 days or more)
You need a thick skin, strong recruiters, and consistent outreach to win and keep good clients.
3. Job Advertising Costs Are Rising
Getting candidates is only getting harder. Most job boards are now pay-per-click or pay-per-post — and it adds up quickly.
Startups often don’t budget properly for sourcing and advertising. The result? Job orders go unfilled, recruiters get frustrated, and momentum stalls.
You’ll need to spend wisely but consistently — and know how to track ROI on your sourcing dollars.
4. Insurance is a Dealbreaker
Workers’ comp, general liability, professional liability, cyber — the list goes on. And in healthcare staffing, premiums are higher, especially for:
- Long-term care
- Allied health roles
- Travel nurses
Many new agencies can’t even get approved for coverage, or they’re quoted sky-high premiums that kill margins before they even start.
This alone has stopped more than a few agencies from ever getting off the ground.
5. That’s Why You Need the Right Help
Launching a healthcare staffing agency is not just about ambition — it’s about having the right structure, partners, and strategy. That’s where working with an experienced consultant like SBG Consulting makes all the difference.
We help new agencies:
- Navigate MSP systems and land real job orders
- Set up credentialing and compliance the right way
- Cut through the noise with better marketing and positioning
- Avoid insurance pitfalls with proven back-office partners
- Build a launch plan that’s realistic — and profitable
If you’re serious about this industry, make your first smart hire — a partner who’s already been through it all.